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Budget 2015 & The Agri-Taxtion Review Report
The Agricultural Consultants Association wholeheartedly welcomes the recommendations of the Agri-Taxation Working Group in their Agri-Taxation Review as presented to the Ministers for Finance & Agriculture. The Association would also like to compliment both Ministers for their prompt response to the report findings by incorporating 12 of the overall package of 25 recommended measures in the 2015 Budget.
The Association views the Agri-Taxation Review recommendations and in particular those recommendations included in the Budget as being a positive step forward towards increasing land mobility and the constructive use of land as well as providing a much needed stimulus towards farm succession. The Association is particularly pleased that a significant number of items contained in its submission to the Review Group are included in the 25 recommendations. ACA’s recommendations on the inclusion of limited companies as being eligible tenants for lessors seeking the land lease tax exemption along with whole farm replacement qualifying under the Capital Gains Tax farm restructuring provisions are included in this year’s budget. ACA’s proposal for extending Income Averaging to forest clear-felling profits will be examined with a view to implementation in Budget 2016.
The overall package of budget measures coupled with the Agri-Taxation Review group’s recommendations are steps in the right direction but many more innovative actions will be required to realise the true potential of Irish agriculture. ACA is now urging the Government to carry out a review on the provision of farm advice and how best to structure an effective service suited to a changing industry.
“Visit Builds on Momentum of US Agriculture Secretary to Ireland”
On Sunday next Minister for Agriculture, Food and the Marine, Simon Coveney TD, leads a four day trade and investment mission to the US.
The US mission follows hard on the heels of visits to Ireland this week by US Secretary of State for Agriculture, Mr. Tom Vilsack, in which discussions on bilateral trade, beef access and the development of a sustainable Irish food industry featured heavily.
Building on this trade agenda, Minister Coveney’s visit will involve 16 meetings in 3 cities over 4 days. The Mission will take in meetings with major multinational investors and potential investors in Ireland and with a major US premium retail outlet, with trade in high quality Irish food products, including beef, firmly on the agenda. There is also a significant political agenda, with the Washington leg including meetings with the Deputy Secretary of State for Agriculture, Krysta Harden, and a number of key influencers in the US Senate on agriculture and trade issues, and key negotiators in the upcoming Transatlantic Trade and Investment talks.
Speaking before his departure to USA, Minister Coveney said that the development of a positive profile for Ireland as a centre of excellence for food, fish and beverages production, and as a potential location for foreign direct investment, remained a matter of the highest priority for him: “Over the past two years, Ireland has succeeded in positioning itself as an important global player when it comes to the production of high quality food and drink. This success story is built on a foundation of sustainable, climate smart, agricultural production, and state of the art research and technology. We have also succeeded in restoring Ireland’s reputation as the best location in the world for inward investment. This mission is about building the kind of key linkages, both political and commercial, that can further that agenda.”
Minister Coveney also referred to his meeting earlier this week with US Secretary of State Tom Vilsack, who met with him and visited Irish beef and dairy farms as part of a visit to Ireland last Thursday. “We have already had a firm indication, that subject to a positive US audit in the near future, Irish beef could be on US retail shelves later this year. In addition there is now a sense of momentum behind efforts to develop a transatlantic trade alliance between the EU and the United States. I feel strongly that a balanced agreement can benefit both sides. It can also help to build the kind of global consensus that will be essential if we are to meet the twin challenges of climate change and global food security in a world in which demand for food will increase by 50% by 2050. Of course there are many sensitivities on both sides, in particular in the agri-food area, including beef. I am convinced that preparing the ground by building positive relationships with key political influencers and negotiators, can be of immense assistance in terms of developing a common understanding on these sensitive areas, and will ultimately lead to a more constructive negotiation and a more balanced deal.”
The US mission will also provide an opportunity to promote Ireland’s “Origin Green” project, for the development of a world leading, environmentally sustainable agri food production and processing sector, and to increase the profile of Ireland as a centre of excellence for agri food research, technology and food safety. This would be particularly important as a way of preparing the ground for marketing of Irish beef once the ban is removed, and based on the meetings with and US Secretary of State for Agriculture, Mr. Tom Vilsack this week, this should take place in the near future.
Of course Irish companies in the agri food sector are also significant employers in the US, and Minister Coveney will be using the opportunity afforded by his visit to build a platform for such companies to increase their profile in the US.
The Minister departs for New York on Sunday 22nd June.